Innov8, a coworking space provider owned by OYO, has successfully raised ₹110 crore in a funding round, achieving a valuation of ₹1,000 crore. This funding round was oversubscribed by 2.7 times, indicating strong investor interest and confidence in the company’s growth potential. The capital raised will be utilized to expand Innov8’s operations and enhance its service offerings in the competitive coworking market.
PC: Entrepreneur India
Key Investors
The funding round saw participation from several prominent investors, including the family office of Gauri Khan, Mankind Pharma, Rupa Group, and Jagruti Dalmia. Collectively, these investors accounted for 55% of the total funds raised. This diverse group of backers reflects a growing interest in the coworking sector, which has gained traction in recent years due to the increasing demand for flexible office spaces.
Expansion Plans
With the new capital, Innov8 plans to double its coworking centers in India, aiming to reach a total of 100 locations by 2025. The company has already launched two new centers in Mumbai, located in Navi Mumbai and Andheri, each spanning over 1 lakh square feet and accommodating up to 3,000 seats. This expansion is part of Innov8’s strategy to strengthen its presence in major Tier 1 cities, including Delhi, Gurgaon, Noida, Pune, Chennai, Bangalore, Ahmedabad, and Hyderabad.
Strategic Growth Initiatives
The funds will also support Innov8’s strategic growth initiatives, including potential acquisitions, technology upgrades, and partnerships. Rakesh Kumar, Group Chief Financial Officer of OYO, emphasized that the capital infusion will empower Innov8 to accelerate its expansion plans and build on the strong growth and operating leverage the company has already achieved. The focus on technology and innovation is expected to enhance the overall customer experience and operational efficiency.
Financial Performance
Innov8 has reported impressive financial performance, with a Profit After Tax (PAT) of ₹62 crore for the fiscal year 2023-24, a significant increase from ₹2.5 crore in the previous year. This growth is indicative of the rising demand for flexible office spaces, which has been further accelerated by the shift towards hybrid work models in the post-pandemic era.
In summary, Innov8’s successful funding round and ambitious expansion plans highlight the growing importance of coworking spaces in the modern work environment. As the demand for flexible office solutions continues to rise, Innov8 is well-positioned to capitalize on this trend and strengthen its market presence. With the backing of prominent investors and a clear growth strategy, the company is set to play a significant role in shaping the future of coworking in India.